Health Secretary Andrew Lansley has green lighted the £72m hospital redevelopment, which will see a series of phased improvements over four years.

It represents the largest health-related capital project in the East of England.

Over the next few years, work will include a new ward block, emergency department and theatre/endoscopy block.

The contract has been sub-divided into a programme of work packages.

The scheme includes:

• A new extension to the emergency department and refurbishment of the existing department

• A £19m ward block containing 14 assessment trolley spaces and 62 beds

• A £20m theatre and endoscopy block including two day surgery theatres, two laminar flow theatres and four endoscopy rooms.

• The hospital tower building will be refurbished to provide 78 additional beds

• The critical care unit will be increased from 12 to 20 beds

Lansley said: “I am thrilled to announce the redevelopment of Lister Hospital. It’s great news for patients, staff, and the community.

“The urgent need for this project has been apparent for many years now and I applaud the hard work of those who have brought us to this point.

“This is the fourth and final phase of the reconfiguration of services in east and north Hertfordshire and it will help deliver high quality and sustainable care for patients for many years to come.”